Spirits maker Tilaknagar Industries Ltd (TIL) on Friday announced prepayment of its restructured debt to Edelweiss Asset Reconstruction Company (EARC), signalling the end of the financial reconstruction phase.

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Accordingly, the total restructured debt of Rs 176.22 crore as on June 30, 2023 of EARC Trust now stands reduced to nil, said the country's largest premium brandy maker in a regulatory filing.

"Consequent to the above prepayment, the corresponding balance debt of EARC Trust of Rs 3.62 crore has been waived by EARC and accordingly the same shall be written back by the company," it said.

The prepayment of EARC debt has been funded through a debt of Rs 130 crore from Kotak Mahindra Bank and internal accruals of the company, it added.

"The company has now completely repaid the restructured debt of all the three EARC Trusts -- EARC Trust SC 233, EARC Trust SC 241 and EARC Trust SC 269 -- as per the Master Restructuring Agreement (MRA) dated February 06, 2020 and stands discharged of all liabilities, dues, demands or claims in respect of the restructured facilities," it added.

Maker of the famous Mansion House brandy, Tilaknagar Industries is reviving its fortune back. It aims to become net debt-free by March 2025.

"Tilaknagar Industries has successfully reduced its gross debt from nearly Rs 1,200 crore as of March 2019 to Rs 239 crore as on June 30, 2023," it added.

As part of the financial restructuring, TIL had entered into an agreement with EARC in February 2020, wherein total loans of Rs 523.32 crore were restructured at Rs 344.47 crore at an interest rate of nine per cent, with balance debt of Rs 178.85 crore.

Earlier in June, it had brought Andhra Pradesh-based Prag Distillery out of liquidation proceedings after the National Company Law Tribunal (NCLT) approved withdrawal following a settlement by the company with its financial creditors Standard Chartered Bank and DCB Bank.

Earlier this week, TIL had announced its June quarter result, declaring multi-fold growth in its net profit at Rs 106.22 crore.

Its consolidated revenue from operations for the first quarter ended on June 30, 2023 stood at Rs 512.96 crore.